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The FOX Report With Shepard Smith

News/Business. Shepard Smith. Analysis and interpretation of the day's lead stories. New. (CC)

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U.s. 16, Us 12, North Carolina 10, Arizona 8, United States 5, Shepard 5, North Korea 5, Benjamin Netanyahu 4, Alaska 4, Orbitz 4, China 4, Joe Miller 4, Murkowski 4, America 4, Jonathan Hunt 3, Maryland 3, Korea 3, Israel 3, Taliban 3, Carolina 3,
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  FOX News    The FOX Report With Shepard Smith    News/Business. Shepard Smith. Analysis and  
   interpretation of the day's lead stories. New. (CC)  

    September 1, 2010
    7:00 - 8:00pm EDT  

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herself. >> yale school graduate and distinguished lawyer, alaskans chose the superior candidate. >> put that on the list. thanks for inviting us into your home tonight. that's it for this "special report." fair, balanced and unafraid. on-line show is now. >> a bizarre hours long hostage stand-off ends with a dead suspect in suburban d.c. and a world of questions. tonight, the man who wanted the discovery tv networks to save the planet and went to their corporate headquarters with a gun. what may have been explosives and a long list of demands. plus you are looking live, the east room in the white house. any minute now, we're expecting the president to make an appearance with the leaders involved in the brand new round of mideast peace talks. senior white house correspondent major garrett has all the details live. plus hurricane warning. earl has strengthened again and is now charting its course. tonight from north carolina to maine. what to watch and when. i'm sheppard smith.
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the news starts now. >> all along the eastern seaboard, the feds are warning be ready to go. some folks in north carolina already scrambling to get out of harm's way. >> on hatteras and the islands, they are ordering visitors to live while they can. >> in the path of the hurricane. the feds say this man organized an attack on a military base that killed seven c.i.a. officers. now, washington is setting its sights on him. >> $5 million reward for any information leading to the arrest. >> and that's not the only reason this accused terrorist is having a very bad day. first from fox this wednesday night, an enormous news day that begins with a dramatic stand-off outside of washington, d.c. cops tell us now that this gunman is dead. his three hostages are safe. after an incredibly bizarre
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rampage by a man with a grudge against the discovery channel tv network. a man who apparently thought babies were parasites, who pollute the planet. police say it started around lunch time at the network's offices in silver spring, maryland. >> he came in, he was wearing what appeared to be metallic devices on his front and pack. he also pulled a handgun out and was waving a handgun. he told everyone to just stay still and he is -- remained in t on the first floor area. >> it was also a daycare center. some of the first pictures we got from the scene were these. workers rolling babies out of the building still in their cribs. police tell us all of the children got out completely unharmed. meanwhile, hundreds of workers were still trapped upstairs in their offices. one of them spoke to us live this afternoon on "studio b."
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>> we heard an announcement on the loudspeaker there was an incident and everyone was to find an office and lock themselves in it. then we heard another announcement to go to the opposite end of the building, the building has two wings to it and they told us to go to the other wing and we were all waiting there. not over the loudspeaker but a person told us to evacuate out the building through the garage. >> there had been a report of a shot fired. and a man with a weapon and police tell us most of the workers did get out of the building safely. but the gunman was holding three hostages we now know in the lobby and that's when we started learning more about him. and what a story. turns out 43-year-old james j. lee has a history of issues with the discovery channel not to mention humanity in general. we'll get to his manifesto in a moment. witnesses and police tell us he organized a protest outside the very same building two years ago that then he called on the network to do more to save the planet. but the protesters were mostly
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homeless people and high school students who he paid to be there. police say he even threw wads of cash into the air. well, this afternoon, in the middle of the stand-off, our neil cavuto spoke with the gunman's brother-in-law who says the family hasn't seen lee since that protest. >> did you ever think that something like this could happen after he upped the ante? >> yes, but i always thought it would be him coming to my door. i'm not surprised. i do see that this is his desperate act to get, you know, to validate his own ego and opinion. this is his desperate act to, you know, i'm important. >> so you think he is capable of killing? >> absolutely. >> capable of killing. and the police agreed. the hostages were in grave danger. so they tell us they shot him and killed him. catherine herridge live in
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silver spring tonight. you were on scene all afternoon. tell us how this thing finally ended. >> well, shepard, let me set the scene. i'm two blocks from the discovery building. right now, a 10 square block area is still cordoned off by police and you hear this ring or ping sound, that's the traffic signal next to me, it's jammed, if you will, because the streets haven't been opened. i've been here all afternoon. it was a very fluid situationment by 4:00 eastern, it was clear to me based on a briefing by police that the negotiations with the suspect, james lee, were not going well. we were told that the tactical unit moved in. they could see lee with a video camera that was at the scene and then finally they decided they had to act. >> it's reported that he pulled out the handgun, that he came in with. and pointed it at one of the hostages. it's unconfirmed now whether he actually fired the weapon or not. but at that point, our tactical
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units moved in. they shot the suspect. the suspect is deceased. >> a short time ago, we heard with one of the officers from discovery's communications department, obviously they thanked the police here for bringing it to a successful conclusion and they also urged a lot of patience on behalf of their employees saying that this investigation will take several days, if not weeks, to really understand what motivated the suspect in this case. shep? >> you reported this man had things strapped to him and then later police talked about backpacks full of something that kind of looked like explosives, what do we know? >> well, it's clear tonight that the situation has not been clear that there is still a danger within the building behind me. we are told by the police that when james lee, the suspect, entered the building, he had four items with him. he had two boxes and two backpacks and the police are working on the assumption tonight that those four items contain explosives. they're trying to verify that and clear them from the building, shep?
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>> catherine herridge live in silver spring, maryland. he said people are parasites on this earth. and that we shouldn't have anymore babies. says he read a book, had an awakening, that he had to do more to save the planet from the people who inhabit it. on his web site, he indicated he wanted the discovery channel to broadcast what he called their commitment to save the planet and "all programs on discovery health, tlc, must stop encouraging the birth of anymore parasitic human infants and the false heroics behind those actions. the chief fox correspondent jonathan hunt has more on the dead man's demands and his disturbing past that's coming up inside "fox report." >> first tonight, a hurricane warning. hurricane earl has strengthened again. it's back to category 4. maximum sustained winds near 135 miles an hour. in north carolina, evacuations are on and all the way up the coast to canada, watches are up. north carolina's governor has now declared a state of emergency as the storm moves
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toward the state. forecasters say the strongest winds will likely hit the coast thursday night into friday morning and officials in north carolina are warning vacationers and residents alike to immediately leave isolated sections of the outer banks. >> the later that we were from told us last night, you know, starting at 5:00 this morning, they were mandatory. everybody had to leave. >> it's sad because like reality hasn't really set in because it's so beautiful out and it's like oh, i don't want to leave this. but it's like it's kind of like the calm before the storm. so just trying to keep it cool. keep a cool head and get out as fast as we can, i guess. >> get out as fast as you can. we're hearing of hundreds of cars backed up on the highways that connect the barrier island to the main land but this storm is expected to eventually affect tens of millions of people. team fox coverage. the path of the storm from the fox extreme weather center right to jonhan sierry right kill devil hills, sou carolina. already signs of the storm. >> that's right. the evacuation notices are increasing. we just got la word that dare
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county is ordering the evacuation of 30,000 residents. meanwhile, you can see t heavy surf behind me, lifeguards have been worried about rip tides and have been keeping swiers out of the water all day ande anticipa they'll continue to do so througut labor day ekend. >> ds it look like they're paying attentio they've been through aot of stms around there. >> by and large, they are. many residents going to the surmarket, stockg up on bread, water and other essential supplies and heeding the warnings of north carolina's governor. listen to this. >> my message to the people of north carolina is a simple one. it's to be prepared. it's to have your hurricane supply kit all together. your water and your food supplies and your medicines and be ready. because none of us can tell what's gonna happen. >> so far, shep, we're not seeing a lot of peoe boarding up homes and businesses. however, people are keping a nervous eye on the storm path even if the eye stays well out to sea. they anticipate that we're going to experience some strong
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tropical storm force winds if not hurricane force winds where i'm standing right now, shep? >> in this rough economy, messing up labor day weekend, that's got to smart. >> that's right. they're worried about driving away tourists, many of them who are still here say that they're going to leave tomorrow before the onset of the storm. also, long term, they're worried about beach erosion. much of the beautiful sand you see here could be gone after the storm. even if we only suffer a glancing blow on the outer banks, shep? >> they're worried about that for 1,000 miles up the coast. jonathan, thank you. we're getting some images from nasa that give a sort of different perspective of this thing. look here, the space agency releasing photos that astronauts took from the international space station. wow! that's from 100 miles above the earth. much of earl's impact will really depend on when it makes a turn to the north and the east because if that move happens earlier than forecasters expect, everybody could be ok. if it happens later, that could be serious trouble for folks from north carolina all the way to new england. let's get right to the chief meteorologist in the fox extreme
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weather center. how is it looking? >> let me tell you what, we'll have beach erosion up and down the eastern seaboard as you said it. we have hurricane warnings from the north carolina border down to inlet in north carolina. let me tell you what's going to happen here. we are certainly going to see some very rough conditions here. we're going to see a little bit of storm surge likely coming in the sound so from the backside here, and we're talking best case scenario, maybe 30 to 60-mile-an-hour winds. but i'll tell you what, we're potentially, if this goes any farther towards the west going to be talking about a much different situation and much higher winds than that. and we're not going to really know that, shepard and probably until a few hours before we'll see this kind of extreme immediate approach. so if you're going to get out, you need to be doing it right now. once it makes that turn, it's going to move very quickly so hurricane watches now have been posted for cape cod and the islands. that is within around 48 hours within those impacts. another storm to watch, that was just named at 5:00, shepard, i'll show you the track later in the show because that's pretty interesting as well. here's the storm, though, and
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we're going to be talking about a very close situation tomorrow night right around this time, shepard, we'll be getting to the closer point to outer banks, maybe, 30, 50, 60 miles, somewhere in there. those miles make a big difference. >> thank you, sir. president obama holding high level meetings today with leaders from the middle east. and now there's word of progress. after his talks with the israeli prime minister and the palestinian president. we'll get live to the white house for brand new details on that plus looks like north korean leader kim jong-il may be getting a little sneakier. what officials are reportedly trying to do with some very dangerous weapons. that and the background of this guy who wanted us all to stop having babies whom the police killed this afternoon. what was his beef with the discovery networks and why did he ruin the day? with orbitz, i know what to expect from my vacation. bad dog, balloon pop. [ dog whimpers ] because orbitz has price assurance. man with computer. if another orbitz customer books the same hotel or flight for less,
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your adventure starts here. >> president obama now setting his sights on mideast peace. hosting a handful of leaders in the white house for one-on-one
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meetings and they are big leaders. the president kicked off a busy day this morning. first sitting with the israeli prime minister benjamin netanyahu followed by netanyahu's palestinian counterpart, mahmoud abbas and then the king from jordan and the egyptian president hosni mubarak and the president condemned the latest mideast violence from the rose garden. >> we know that extremists and enemies of peace will do everything in their power to destroy this effort. as we saw in the heinous attacks near hebron which we have strongly condemned. but we know this, too much blood has been shed. >> an attack that killed four israelis and hours ago, reports of another shooting there. our senior correspondent on the north lawn tonight. the president is center stage but won't be tomorrow and the united states may not be there every step of the way. you know? >> that's right, shepard. there is no formal u.s. peace plan for the two sides to deal with. tomorrow, the three hours of scheduled face-to-face direct
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talks will be dealt with principally by the secretary of state, hillary clinton, special envoy george mitchell and in the future when the israelis and palestinians get together, the u.s. will be nearby but not necessarily physically present in each and every meeting. why? because the u.s. says it can't solve this problem. the president reiterated that message earlier today in the rose garden. >> ultimately, the united states cannot impose a solution and we cannot want it more than the parties themselves. there are enormous risks involved here. for all the parties concerned but we cannot do it for them. >> to that end in the remarks that benjamin netanyahu is interest to give in the east room here at the white house, he will say in part, we do not seek a brief interlude between two wars. we do not seek a temporary respite between outbursts of terror. we meaning israel seek a peace that will end the conflict between us once and for all so on the israeli side, there will be some professions along those mr. obama articulated earlier today in the rose garden. >> the armed wing of hamas do
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not want peace. they've made that clear and these attacks, obviously, designed to scuttle the talks and it hasn't happened but have put a lot of people on edge. >> it has put a lot of people on edge. this is the early test and unwelcome and deadly early test of the ability of these peace talks to at least get off to a fresh start and if not fresh, one that will at least continue into tomorrow and benjamin netanyahu who after meeting with the president here at the white house said this about his talks privately with the president. >> open, productive, serious in the quest for peace. also centered around the need to have security arrangements that are able to roll back this kind of terror and other threats to security. >> the inevitable result of these hamas led attacks is that security, israel security has moved up to the top of the agenda, not exactly helpful to the palestinians. >> exactly, major garrett live at the white house. thanks very much. the event that's going on there right now is live and streaming live if you'd like to watch at
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foxnews.com. well, just hours after the president marked the end of the u.s. combat mission, i should actually say a federal judge ruling on a new challenge to arizona's immigration law. this one from a police officer. up next, why the cop sued. how the judge ruled. and what it could all mean for future challenges. that's just ahead. why does my company have so manyrinters and copiers? ll different brands with different controls? give me one product line with a big colorful lcd screen and common controls. and with arp o.s.a. technology, i can easily integrate with my i.t. systems. and i don't want tuse one of those mini-screen keyboards. how about a built-in keyboard? ♪ was that too much to ask? [ male announcer ] the award-winning mfp lineup from sharp. work without limits. from sharp. i love running my tongue across my teeth and feeling all the stuff i missed. as long as i get all the stuff i see, it's fine.
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>> new round in the battle over arizona's new immigration law. a judge has thrown out a lawsuit from a tucson police officer who claims the measure would force him to violate suspect's rights. this is the same judge that put the most controversial parts of that law on hold last month. arizona's governor is appealing that particular ruling and that's not the only legal battle facing the state tonight. trace gallagher live in the west coast news hub tonight.
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why did the judge throw out the police officer's lawsuit? trace? >> well, the officer's name, shep, is martin escobar. he claims if he violated a suspect's rights, that suspect can come back and sue him but the judge, susan bolton as you mentioned, the same judge that blocked key proipvisions in the arizona law said he was speculating that, in fact, mr. escobar could not prove that he would be sued by a suspect. she also said that public officials can't simply file a lawsuit to block laws they simply don't like or they believe are unconstitutional. we should also note that a phoenix police officer has also sued the state of arizona. that lawsuit, shep, is pending. >> there are more lawsuits, right? what do we know on status? >> >> along with that phoenix police officer's lawsuit, there are four other lawsuits filed by the aclu and hispanic groups and those suits will, by the way, be handled sometime in the next three or four weeks but arizona governor jan brewer has now announced that the state has
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gotten $2 million in donations to help fight those lawsuits but arizona is now primarily focused on their appeal to the ninth circuit court of appeals. arizona is, of course, challenging judge bolton's decision to block key parts of the arizona law. the ninth circuit will hear this case the first week of november which, by the way, is after the midterm elections. remember, arizona wanted this case heard before the midterms and the court said no. but everybody involved in this case believes that this thing is likely to go all the way to the supreme court. >> trace gallagher live in los angeles. thank you. we have new details on a massacre just south of the u.s. border. officials say a second man escaped the killers whom police suspect are part of a mexican drug gang. 72 migrants died last week. they found their bodies blindfolded and stacked against a wall at a ranch 90 miles south of brownsville, texas.
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this is the first man thought to have made it out alive despite suffering a gunshot wound to the face. the 19-year-old from ecuador reportedly played dead. then walked several miles just to get help. officials now say they believe the gang killed the migrants because they refused to smuggle drugs. there's new information tonight on the suspect in that stand-off at discovery channel's headquarters. we're told he had a history erratic behavior and learning more about what he's really demanding as he held hostages and said babies are parasites on this earth. we'll get an update just ahead and during the break, foxnews.com, the web team has put together a slide show of this particular stand-off as well as a timeline of how it went down. it's at foxnews.com. click on the discovery hostage stand-off link. people like watching it rain, as long as they're not outside.
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i think this is gonna be a problem. see what i mean? hey, i know what i'm talking about. because i'm a home people. and, there's no place like me. [ female announcer ] only flood insurance covers floods. for a free brochure, call the number on your screen. >> cool critters now. seeing a deer is hard work. hunters try to shoot you. people put up fences to keep them from their flowers. at the end of the long day, it's probably nice to be able to kick back and relax. perhaps with a beer. >> ah, yes, beer. local television in china reports this deer developed a taste for beer after a waitress at a resort offered the animal just a little sip, as you can see. deer loved the beer. it downed a couple of beer bottles each day and the deer will supposedly even drink wine but only if everybody is out of
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beer. there is no video of the deer actually stumbling around all tipsy. if there were, we would presume it would look something like this when several deer rampaged through the beer arena near pittsburgh last year, clearly in search of a drink, the moral of all this deer obviously love their beer. don't we all? i'm shepard smith. this is the fox report. it's the bottom of the hour. time for the top of the news. we are learning a lot more about the suspect outside the hostage stand-off at the discovery networks and his rampage about parasitic human infants and immigration pollution. as we've been reporting, officials say this man, lee, held three people hostage for hours at discovery channel network's headquarters in silver spring, maryland. police say they shot and killed him. no one else was hurt. jonathan hunt has the latest live from the newsroom.
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man that web site is a piece of work. >> shep, yeah, if you look at the web, you can find what can only really be described as rants by this man going back at least as far as 2006. we also know, of course, that in february of 2008, he led a protest outside the discovery channel headquarters in which he threw thousands of dollars in the air, describing money as trash. despite legal action following that protest, he kept up his protest against discovery and his brother-in-law told neil cavuto today that the family had become very worried about his increasingly strange behavior. listen. >> he's been very abusive and hurtful to the people who love him, sisters and brothers and a lot of family members who have tried to get him help over the years. >> today, of course, shep, we saw the culmination of that strange behavior and the culmination of those family fears. >> i went to that web site
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today, jonathan and the list of demands for the discovery channel is as long as your arm. >> yeah, very strange indeed. basically, he said that the discovery channel should "save the planet by stopping what he called glorifying human birth." he also said they should try to stop all immigration and what he called the "anchor baby filth that follows that." he said we should focus on saving animals. he listed them. tigers, giraffes, elephants, ants, beetles and he ended that list by saying and i'm quoting here, and, of course, the squirrels. the humans, he asked, the planet does not need humans. that's the kind of thing that is on those list of demands. shep? >> all of this began with a talking gorilla and a book. >> yes. he has repeatedly quoted as his inspiration two books by daniel quinn. ishmail and the sequel my ishmail. in those books, a telepathic
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communicates with humans and tells them how to save the world and the list of demands that he led to today's tragic conclusion, shep, appear to have been inspired by this telepathic gorilla in the sequel communicating his wisdom to a 12-year-old girl. shep? >> and now he's dead. jonathan hunt in the newsroom tonight. thank you. north korea is apparently trying to pull a very fast one in the international weapons market. two u.s. officials now confirm to fox news that north korea has been changing the names of certain companies to secretly avoid united nations bans on weapons sales. that's not all. nuclear nation also reportedly using fake documents to transport weapons through china. reportedly going so far as to label torpedos as fish processing equipment. >> kind of fits. steve centanni, national correspondent at the pentagon tonight. anything from officials on this around here? >> well, it's a kind of behavior officials have come to expect from north korea.
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this kind of changing the names of companies to get around the sanctions of using a phony trade-in voices to ship arms through china. the torpedos labelled as fish processing equipment, there were also some rocket shells that were sent and labelled as oil drilling equipment. now, at the state department today, p.j. crowley was asked about all this and here's what he had to say. >> doesn't surprise us at all. there is this, you know, cat and mouse process that does go on. we are aggressively pursuing sanctions against north korea. we announced, you know, additional steps earlier this week. we're not surprised that, you know, north korea will try to respond and hide its activities. >> well, we don't know exactly where these arms were being shipped to but experts say the common destinations are from north korea to burma. north korea to syria and then on to iran. >> and the thinking is, steve,
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that the latest sanctions could help crack down on that sort of thing. >> that's right. this was all in response. this devious behavior by north korea was in response to some u.n. security council resolutions. u.n. security council sanctions that were slapped on the north last year. that of course, because of the launch of the long range missile and the nuclear testing and some companies were black listed so these are the companies they changed the name of hoping they could, then, continue to do business. now, a new round of sanctions was announced, was signed by the president on monday. these target the assets of certain individuals, of certain corporations and organizations so this could help if the money totally dries up in this asset freeze as part of the latest sanctions. shep? >> steve centanni live at the pentagon. thanks. remember the other night when there was all this reporting including from here maybe somebody had done a dry run on a terror attack? well, news from today, officials have freed the two yemeni men who were arrested on a united airlines flight from chicago to the netherlands. we're told this amateur video of
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police taking them off the plane after it landed there. items in their luggage apparently raised suspicions of a possible terror plot or a dry run training mission or something. sources say there were multiple cell phones, one of them taped around a pepto-bismol bottle. we're also told there were watches taped together and a knife and at one point, there was report of a box cutter but now you can't find out if there was one or wasn't one. anyway, the men were allowed to fly because none of the items violated u.s. security rules. and dutch prosecutors now say there was zero evidence of any wrongdoing and now they're free. a police cruiser's dash camera rolling during a crazy car chase. our top story on a fox trip across america. ohio, just released video shows a guy in a minivan racing from police officers. the chase lasted about an hour. winding through three counties, both front tires on the van pretty much gone for part of the run. you can see the sparks. the driver did finally crash.
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cops reportedly shot the man in his backside when he climbed out of the driver's side window. florida, security cameras capture the smash and grab at a dive shop in fort lauderdale. the suspect busting his way in with an axe. you can hear the alarm go off. when the guy finds the cash register empty, he turns to the display cases. police say the suspect made off with more than $2,000 worth of their stuff. colorado, authorities working to clean out a marijuana grow in the mountains north of boulder. a guy that lives nearby says the weed was in a remote place. >> nobody goofs around in the hills. it's steep, rugged terrain around here so the guys found a good spot to do it and grabbed and wanted to make good money. >> a hiker reportedly spotted the pot. no arrests yet. and right next door in denver, the owners of a whiskey distillery asking volunteers to bottle their booze because they can't afford the machine to do
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it. they get a bottle of the stuff for a day's work. apparently, it's a hot ticket. nearly 1,000 people now on a waiting list to help out and that's a fox watch across america. >> the latest auto sales reports are in and in the united states at least, the news is not good. but at least one car company is looking ahead preparing to release its highly anticipated electric car. some considerate it groundbreaking. critics say it's on overpriced taxpayer funded boondoggle that can't keep up to the competitors. it's the volt. we'll report, you decide next. just don't feel like they used to. are you one of them? remember when you had more energy for 18 holes with your buddies? [ glass shatters ] more passion for the one you love? more fun with your family and friends? it could be a treatable condition called low testosterone, or low t. c'mon, stop living in the shadows. you've got a life to live. [ male announcer ] so don't blame it on aging. talk to your doctor and go to isitlowt.com
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we had about 11 million on pace for the year. and sales drop was worse compared to august of last year when the government's cash for clunkers program was in full swing. remember, the program let folks trade in old gas guzzlers for rebates towards more fuel efficient cars. now the market may be getting another big boost when g.m. rolls out its much anticipated electric car, the volt. our mike tobin took a spin and he's live in motor city right now. how was the thing there? a test track, right? >> yeah, you know, shepard, it's not a glorified golf cart. the chevy volt drives like a real car and g.m. is banking on the idea that this is the vehicle that starts to make electric cars common place. g.m. promised an electric car that could charge its own battery and keep on driving. took a turn around the bankruptcy track and delivered the chevy volt. >> everything that g.m. does would not exist today if the bailout hadn't happened a year ago. >> g.m. got $50 billion in
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bailout money, a $240 million grant from the energy department, $14 billion to retool general motors plant. even the korean company that supplied the battery got $150 million from taxpayers. >> it practically is the equivalent of the space shuttle. the space shuttle is expensive. the space shuttle is in limited production but the space shuttle has done amazing things for other industries in terms of everything from materials research and fostering interest in engineering. >> it's the first mass production electric car. it charges from a common plug but because the engine also charges the battery, distance is unlimited. but the price is a back breaker. $41,000. the gasoline powered equivalent, the chevy cruise is $17,000. with all the tax dollars that kept g.m. and the project alive, the auto giant is banking that people will still line up and pay extra to have the first earth friendly gadget. >> it was general motors' intent regardless of the intervention and activity with the government to be technology leaders again and the chevy volt is just that.
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general motors showing its technological prowess. >> now, you know, shep, g.m. is boasting a tax rebate of up to $7500. that still puts this electric car in price competition with your cheaper b.m.w.'s and mercedes. hit the dealers in november. >> all right. mike tobin live in detroit. thank you. a bright spot in the rough economy. u.s. manufacturing last month was much stronger than the analysts expected. the institute for supply management which surveys u.s. factories purchases reports its manufacturing index rose to 56.3 in august from 55.5 the prior month. that means absolutely nothing to you, does it? doesn't to me either. we know it's a gain and the first one in four months and stocks rallied as a result. that and news from china really. the dow soared early and stayed there for the day. by the closing bell, the dow was up 255. nasdaq up 63. s&p up 31. hours after the president marked the end of u.s. combat mission in iraq, commanders on the
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ground made it official launching their next mission called operation new dawn. >> ivice president biden on had for the transfer ceremony in baghdad. he called on the iraqis to form another milestone and form a union needoverent. it was obviously a much different scene than the night the war began more than seven years ago. that's what they call shock and awe. since then, more than 4400 americans have died. more than 30,000 have been wounded. today, reporters asked the defense secretary robert gates whether he thought this war is worth it. >> the premise on which we justified going to war proved not to be valid. even if the outcome is a good one from the standpoint of the united states, it will always be clouded by how it began.
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>> but was it worth it? he didn't answer that. gates also tells fox in a tv exclusive that the u.s. would consider keeping troops in iraq beyond 2011 but only if the iraqi government requests it. and the justice department implicating now the leader of the taliban or i should say the pakistani taliban in the bombing deaths of seven c.i.a. employees in afghanistan. the department charging this guy with conspiracy to murder u.s. citizens abroad. and conspiracy to use a weapon of mass destruction. last december, a jordanian double agent bombed a u.s. military base in afghanistan. that bombing killed seven c.i.a. workers and six other u.s. citizens. the united states also officially labelling the pakistani taliban as a terrorist group. that happened today. the state department offering up $5 million for information leading to the arrest of this man. well, another victory for the tea party folks against a mainstream republican candidate. who won?
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who's going home? and how the former alaska governor and current fox news contributor sarah palin plays into this all this. [ woman ] alright, so this tylenol 8 hour lasts 8 hours. but aleve can last 12 hours. and aleve was proven to work better on pain than tylenol 8 hour. so why am i still thinking about this? how are you? good, how are you? [ male announcer ] aleve. proven better on pain. and those people are what i like to call wrong. metamucil is the only leading fiber supplement with psyllium, which gels to help remove waste and reduce cholesterol.
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>> fox news is all together now america's election headquarters. a week after voters went to the polls, a political upset in alaska. the republican senator lisa murkowski now the seventh congressional incumbent, the seventh to fall in these primaries. last night she conceded a very close to joe miller, little known tea party candidate. it was a major victory or seen as such by political observers to that movement and there was the palin effect. the former governor backed miller in a contest and she also happens to have a history of bad blood with the murkowski family. dan springer with the news live tonight in anchorage or this afternoon. hello, dan.
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>> yeah, hey, shep. if you're keeping score at home, it's sarah palin, 2. murkowski family, 0. first it was her taking out frank four years ago and had a big hand in lisa's loss and now a political dynasty in alaska is over. lisa was u.s. senator for eight years. before that, she was a state senator. her dad frank was governor and held that senate seat before he gave it to her. after a full day of counting absentee ballots yesterday, murkowski still trailed joe miller by 1600 votes with only about 6,000 left to count. so she gathered the troops and conceded. >> we know that we still have outstanding votes to count in this primary. but based on where we are right now, i don't see a scenario where the primary will turn out in my favor. >> now, joe miller's job is to unite the republican party. he will need to do that in order to beat the democrat, scott mcadams. murkowski appears bitter and did not endorse miller last night but this iraq war vet and yale
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law school graduate seems unphased. on fox news this morning, he said his tea party message of smaller government reaches across party lines. >> the approach that we have is very much one that had bipartisan and that's basically bringing control back to the state. basically minimizing the power of the federal government, limiting to its enumerated powers. >> and what is most shocking about this result is that a poll was taken seven weeks ago and found that a majority of alaskans when asked about joe miller said joe who? and now he's the favorite to become the next senator from alaska. shep? >> dan springer streaming live this afternoon from anchorage. thanks. a big day for apple fans. the computer giant announcing a whole slew of product updates today. the c.e.o. steve jobs unveiled new designs for the features for the popular ipod model but who gets excited about new ipods anymore? anyway, it has a nano with a touch screen and a revamped ipod touch with not one but two
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cameras and that can record h.d. video quite an upgrade. jobs announced a new version of the apple tv video player that can stream videos from your computer as well as netflix and you tube. it's expected to go on sale next month for $99. and there's word facebook is entering the retail world. reports indicate target will soon be offering facebook gift cards that folks can use to buy virtual goods for the site's most popular games. according to reports, some 200 million people play games on facebook. and we're told many of them are beginning to pay for premium content. a state of emergency declared across the state of north carolina tonight. hurricane warnings and watches are up from north carolina all the way to massachusetts. as forecasters upgrade hurricane earl to a strong and deadly category 4 again. where it's expected to hit and when with a hurricane update from the extreme weather center.
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that is next. [ sighs ]
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>> updating some of fox's top stories now. president obama is about to start a working dinner with the israeli prime minister and the palestinian president and we're seeing signs of optimism. at an event before the dinner, israel's benjamin netanyahu turned to the palestinian leader and said you are my partner in peace. president abbas later responded, let us sign a final agreement for peace. and president obama said he is cautiously optimistic about the outcome of these talks and officials in north carolina ordering 30,000 residents and visitors to leave hatteras island ahead of hurricane earl. a spokeswoman says the people there who are telling those to stay that they may have to go without government services for up to 72 hours after the hurricane. let's get right to our chief meteorologist for the latest update on the storm. >> i got to tell you about earl but have to quickly mention gaston. this was named today. by the weekend we're probably
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talking about another hurricane out in the atlantic. this could have u.s. impacts also by the time we get towards maybe seven or eight days from now. right now, all eyes on earl and i got to tell you what, looking very, very serious. that eye very tight, very well formed. last couple of satellite images looked like it might be beginning to make that little bit of a right turn to the north. that would be great news. but officially this is still the track and i got to tell you, by around tomorrow night this time into the overnight hours, it's going to be deadly close to that cape hatteras area, shepard. definitely some very serious impacts for those people. if it goes at all to the west, much more significant impacts so very crucial issue there with 10, 20, 30 miles there. friday afternoon, it gets out here maybe potentially affecting areas like long island and check this out, shepard, by saturday, it's gone. moves very, very quickly so impacts across parts of cape cod and the islands. what happened very quickly, could be very significant. if it happened very quickly, nonetheless. >> that could leave a beautiful labor day weekend. >> will leave a nice saturday, sunday and monday for pretty much everybody across the area.
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>> this oppressive heat gone, at last long 98 in new york. stop it! great to see you. thank you. and on this day in 1969, an army captain named qaddafi became a leader. he was born to a desert farmer. qaddafi graduated from the university of libya with honors and later had a plan to overthrow the monarchy. qaddafi and his crew would seize power while the king was in greece for a medical visit. the west routinely accused qaddafi's libya of funding terrorism and in the year 2003, he finally did accept his country's responsibility for the lockerbie bombing of 1988. he's now the third longest serving head of state in all the world but qaddafi first took over 41 years